Review of Economics and Statistics MS #14680

Title: "Identifying Moral Hazard in Car Insurance Contracts"

Author: Sarit Weisburd

DATA/PROGRAMS/CODES for Data Archive

README file

This file provides an outline of the programs provided in the data archive that
the author used to produce the the tables and figures in the paper. As the data is propriety
and contains private information on the insured it can be accessed by submitting a request to the
author (saritw@post.tau.ac.il). All programs were run in Stata MP version 11.

**************************************************************************************************
Creating Base Dataset

Program: 
	Weisburd_Restat_Data_Clean.do

Dataset:

	Raw files combined in cleaning: 

              1. company_renew_action.csv - a list of client_nums with an action identifier,
                 when action==new this is a new insurance client (proprietary data).
                 Source: Data Provider
              2. premiums_policy.csv - a list of insurance premiums paid by private clients
                 (proprietary data). 
                 Source: Date Provider
              3. names.csv - a dictionary file to translate names into genders. 
                 Source: Sarit Weisburd
              4. cities.csv - a dictionary file to translate city names from Hebrew to English.
                 Source: Sarit Weisburd
              5. avg_inc.csv - average income per individual by city and year.
                 Source: Israel Central Bureau of Statistics GEOBASE program
              6. bagrut.csv - percent of students that are eligible for bagrut by city and year.
                 Source: Israel Central Bureau of Statistics GEOBASE program
              7. distance_from_work.csv - driving distance between workplace and other cities in Israel
                 (proprietary data).
                 Source: Sarit Weisburd (calculated using maps.walla.co.il)
              8. cities_direct.csv- location of cities relative to Tel Aviv 
                 Source: Sarit Weisburd
              9. accident_location.csv - locations where accidents occured for private clients.
                 Source: Data Provider
              10. accident_location2.csv - locations where accidents occured for company clients.
                  Source: Data Provider
              11. residence_accidents.csv - driving distance between cities of residence and relevant cities
                  where accident occurred.
                  Source: Sarit Weisburd (calculated using maps.walla.co.il)
              12. private_policies.csv - list of policy information for private policy holders 
                  (proprietary data)
                  Source: Data Provider
              13. classification.csv - list classifying which car accidents are collisions
                  (proprietary data)
                  Source: Data Provider + Sarit Weisburd
              14. private_claims.csv - list of claims data for private policy holders (proprietary data)
                  Source: Data Provider 
              15. company_policies.csv - list of policy information for company policy holders 
                  (proprietary data)
              16. company_claims.csv - list of claims data for company policy holders (proprietary data)
                  Source: Data Provider   
              17. parking.csv - list of all accidents in data that occurred in the process of parking
                  or in parking lots (proprietary data).
                  Source: Data Provider + Sarit Weisburd
              18. car_models_byyear - list of car values
                  Source: Levy Yitzchak Blue Book Values (transferred from hard copy to excel by Tehilla)  

	Output File (Clean File Used in Regressions): 

        weisburd_restat.dta


**************************************************************************************************
Running Analysis & Creating Tables

Program: 
	Weisburd_Restat_Tables.do

Dataset Input:
        weisburd_restat.dta

Output:
        Table 1 - Table 7 

**************************************************************************************************

Data Dictionary:

fid - id of insured
start_date - start date of policy                  
end_date - end date of policy    
policy_length - length of policy in years
period - count variable indicating how many policies owner has had with insurance provider to date
year_04 - (0/1) variable referring to whether or not this policy was active in 2004               
year_05 - (0/1) variable referring to whether or not this policy was active in 2005                     
year_06 - (0/1) variable referring to whether or not this policy was active in 2006                        
year_07 - (0/1) variable referring to whether or not this policy was active in 2007 or later        
p_winter - (0/1) variable referring to whether or not this policy contains winter months (November-March)
tot_premium - price of annual insurance policy in US dollars 
c_insurance - out of pocket expected cost to the insured when involved in an accident                
c_insurance_min - calculated out of pocket expected cost to the insured when using minimum discount rate                 
c_insurance_max - calculated out of pocket expected cost to the insured when using maximum discount rate                
company - (0/1) variable referring to whether or not this is a company insurance policy
new - (0/1) variable referring to whether or not this is a new policy
accident - number of accidents recorded between start_date end end_date
d_accident - (0/1) variable referring to whether or not an accident was recorded between start_date and end_date
fault - (0/1) variable referring to whether or not the driver was at-fault for this accident   
parking - number of accidents involving parking that were recorded between start_date end end_date
 
residence_accident - distance in kms from city of residence to city of accident
winter - (0/1) variable referring to whether or not accident occurred over winter months (November-March)
daccident1 - (0/1) variable referring to whether or not the driver had an accident in his/her first period of coverage  

owner_sex - equal to 1 when owner is male
distance - distance in kms between residence and workplace                 
bagrut - percent of 12th graders in city of residence that completed matriculation exams              
avg_inc - is defined as average family income in the client's city of residence in US dollars  
d_internal- (0/1) variable referring to whether or not city of residence = city of workplace                  
d_NE - (0/1) variable referring to whether or not city of residence is NE of Tel Aviv.                
d_NW - (0/1) variable referring to whether or not city of residence is NW of Tel Aviv.                           
d_SE - (0/1) variable referring to whether or not city of residence is SE of Tel Aviv.                             
d_SW - (0/1) variable referring to whether or not city of residence is SW of Tel Aviv.                             

year - year car was manufactured                
engine - engine size     
car_value01 - blue book value of vehicle in US dollars              

mean_engine - average engine size of all cars owned by the insured
mean_year - average manufacturing year of all cars owned by the insured
mean_bagrut - mean matriculation completion rate at city of residence over all years insured 
mean_income - mean average family income at city of residence over all years insured
mean_value - mean blue book value of all cars insured              

